Frequently Asked Questions

No site can possibly anticipate all your questions. This is an effort to answer only the "most" frequently asked questions concerning personal tax liability. We will provide you with an initial consultation and try to provide answers for questions dealing specifically with your issues including business tax issues. You may e-mail us at gcoulter@gctaxlawyer.com, contact us by going to and completing the Assistance Form, call us at one of our phone numbers 1.888.5TAXLAW or 706.546.9755 or fax us at 706.546.1796. We are located in Athens, Georgia, and are ready to help you.

If you filed your returns and did not pay the taxes due on the return, you are probably receiving periodic demand notices from the IRS for payment. These notices generally increase in frequency and severity in tone. You have noticed that the amount claimed is greater than the amount shown on the return. This is the result of the IRS adding penalty and interest. You may have experienced a call or visit from a Revenue Officer. The letters will inform you, if they have not already, that the IRS will file a lien on your property and eventually levy on your assets. There are ways to “delay” this process if you or your representative react and file the proper documentation promptly, that is, within the time frame allowed by the law to appeal the notices. However, if you allow the time period to expire, you must seek a negotiated settlement and compromise of your tax obligations with the IRS. The current vehicle for doing this is the Offer In Compromise. When properly filed and accepted it will stop the liens and levies and provide you with an orderly procedure and time frame for paying your back taxes.
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2. What is an Offer in Compromise?

In its most simplistic terms an Offer in Compromise is a statutory method established by Congress to allow you to settle your IRS debt for less than the amount owed and/or to pay the agreed upon amount over a period of time. There are specific criteria established by the law and through IRS regulations requiring certain forms and procedures to be followed. Failure to follow these will result in the OIC being returned for being incomplete and continued misfiling can result in rejection. Finally, you must meet the IRS required circumstances of: a. doubt as to liability, b. doubt as to collectibility and/or c. the compromise of your tax liability results in effective tax administration, for example you have an economic hardship. The requirements may sound difficult; however, we can qualify most taxpayers under one of the categories.
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3. How long will it take to file the Offer in Compromise and how long for it to be accepted by the IRS?

The IRS requires you to complete a Form 656 and either or both a Form 433A and Form 433 B. In the event you use us to assist with your OIC we require a Form 8821, Tax Information Authorization and a Form 2848, Power of Attorney. These last two forms are necessary in order for us to be certain we include all of your potential tax liability in the OIC and to designate us as your representative with the IRS. The first three forms are requirements for filing the OIC and, to the extent they apply, the OIC will not be accepted by the IRS for review unless they are completed and contain all attachments. Additionally, all OIC’s are now processed at one of two offices depending on your residence: Memphis, TN for taxpayers of most western states and Brookhaven, in Holtsville, N.Y. for taxpayers in the eastern states. Some “complex” cases may still be sent back to the local IRS office for review. When a filing is complete and contains carefully prepared concise arguments it may be determined without a field investigation. Prior to the new OIC form, the Service provided the Taxpayer with at least two attempts to correct a filing; now the procedure has been reduced to only one request to correct. This is a significant change and requires careful, complete documentation on the first attempt so you do not lose your rights to file an OIC. Once filed the IRS typically takes 3-5 weeks in order to conduct a preliminary review of the OIC and either accept it for filing or reject it for lack of completion. At the same time they will determine if a field investigation is necessary. If it is, the OIC will be sent to the local office. After acceptance a “delay” occurs while the OIC is reviewed and either accepted or rejected. Depending on your geographical location this may be as long as twelve months.
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4. If the IRS accepts my OIC for processing what will happen while it is pending? Will I still receive liens or levy notices? Will they file liens or levies during this time?

While the IRS is processing your OIC they will suspend further collection activities. The law prohibits the IRS from collecting a tax liability by levy (a) during any period that a taxpayer’s OIC for that liability is being processed, (b) during the 30 days following rejection of an OIC, (c) during any period in which an appeal of the rejection of an offer is being considered, and (d) while an installment agreement is pending.
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5. What happens when the OIC is accepted and how long do I have to pay the taxes?

Along with the OIC we submit a proposed payment plan. Depending on your financial situation we, with your assistance, determine whether this is a lump sum payment, installment payment or some combination of the two. Once determined we propose the amount and when the payment(s) will start. Assuming the IRS accepts the OIC as submitted you can request up to 90 days to make a lump sum payment. If accepted there will be no penalty, accrual of interest or other charges tacked on to the agreed upon amount. The IRS will simply write off the balance of any amount previously assessed. Also once you have made all the payments the lien(s) will be discharged.
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6. What happens if I do not complete the agreed upon payments or I default on future tax obligations while making these payments?

If you default on the agreed plan of payment the IRS has the right to revoke the OIC and reinstate all of the tax liability including penalties and interest. This would also include a default on filing returns or payment of future tax liabilities for five years from the date your OIC is approved.
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7. How do I determine if an Offer in Compromise is the best solution for me?

The determination of whether to file an OIC must be made on an individual basis. Each taxpayer must have his or her needs analyzed before a conclusion can be reached. For this reason we offer you free initial consultation. Use one of our convenient methods to contact us so that we can analyze your situation. Just complete our Assistance Form and e-mail us or fax it back to us. We will get right back to you with our suggestions.
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8. Can I file bankruptcy and discharge my taxes in that procedure?

Most income taxes are dischargeable in bankruptcy. But restrictions do apply and if you file bankruptcy too soon you will not discharge the tax liability. For example, personal income taxes must be at lease three years old and assessed at least 240 days prior to the filing of a bankruptcy petition. Additionally, you must voluntarily file the return at least two years prior to the bankruptcy. However, some tax liability cannot be discharged at any time by bankruptcy. These relate to the failure to withhold and pay employment taxes.
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9. I am not a resident of Georgia, is it possible for you to help me with my tax problem?

Yes. In regard to an OIC they are processed in one of two offices regardless of where you live. If your case is sent to a local office for review, we can effectively communicate with that office. Further, in the event your tax problem involves a matter outside the OIC process we can represent you in any IRS office in the country, in any Tax Court and in any Federal Court where your case may be filed. Remember all the local offices have the same guidelines and use the same IRS manuals. We have access to these publications. Other than local rules, which are easily obtained, the federal court system is the same. In today’s world of instant communication we can communicate with you, the IRS and any applicable court by mail, e-mail, facsimile and telephone.
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10. Do you have a fee schedule?

We do not have an established fee schedule; however, we do generally charge a fixed flat rate fee in regard to Offers In Compromise. You will receive an engagement letter explaining our terms and conditions and fees prior to our filing any paperwork on your behalf. Once you have approved this letter by signing and returning it to us we will initiate our representation of you in your tax matter.
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